(PLEASE SEE ATTACHED DOCUMENT) Problem 13-5A Suppose selected financial data of Target and Wal-Mart for 2014 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. I
(PLEASE SEE ATTACHED DOCUMENT) Problem 13-5A
Suppose selected financial data of Target and Wal-Mart for 2014 are presented here (in millions).
Target
Corporation Wal-Mart
Stores, Inc.
Income Statement Data for Year
Net sales $65,380 $415,836
Cost of goods sold 44,999 300,351
Selling and administrative expenses 14,927 77,202
Interest expense 690 1,949
Other income (expense) (76 ) (383 )
Income tax expense 1,360 7,222
Net income $ 3,328 $ 28,729
Balance Sheet Data
(End of Year)
Current assets $16,174 $47,571
Noncurrent assets 26,924 122,948
Total assets $43,098 $170,519
Current liabilities $10,720 $54,168
Long-term debt 18,375 43,168
Total stockholders’ equity 14,003 73,183
Total liabilities and stockholders’ equity $43,098 $170,519
Beginning-of-Year Balances
Total assets $44,276 $162,550
Total stockholders’ equity 13,595 64,266
Current liabilities 10,191 54,755
Total liabilities 30,681 98,284
Other Data
Average net accounts receivable $7,789 $4,140
Average inventory 7,110 33,407
Net cash provided by operating activities 5,929 25,981
Capital expenditures 1,785 12,376
Dividends 482 3,988
(a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)
Target Wal-Mart
(1) Current ratio.
:1
:1
(2) Accounts receivable turnover.
times
times
(3) Average collection period.
days
days
(4) Inventory turnover.
times
times
(5) Days in inventory.
days
days
(6) Profit margin.
%
%
(7) Asset turnover.
times
times
(8) Return on assets.
%
%
(9) Return on common stockholders’ equity.
%
%
(10) Debt to assets ratio.
%
%
(11) Times interest earned.
times
times
(12) Current cash debt coverage.
times
times
(13) Cash debt coverage.
times
times
(14) Free cash flow. $
$
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Problem 13-5A
Suppose selected financial data of
Target
and
Wal-Mart
for 2014 are presented here (in millions).
Target
Corporati
on
Wal-Mart
Stores, Inc.
Income Statement Data for Year
Net sales
$65,380
$415,836
Cost of goods sold
44,999
300,351
Selling and administrative expenses
14,927
77,202
Interest expense
690
1,949
Other income (expense)
(76 )
(383 )
Income tax expense
1,360
7,222
Net income
$ 3,328
$ 28,729
Balance Sheet Data
(End of Year)
Current assets
$16,174
$47,571
Noncurrent assets
26,924
122,948
Total assets
$43,098
$170,519
Current liabilities
$10,720
$54,168
Long-term debt
18,375
43,168
Total stockholders’ equity
14,003
73,183
Total liabilities and stockholders’ equity
$43,098
$170,519
Beginning-of-Year Balances
Total assets
$44,276
$162,550
Total stockholders’ equity
13,595
64,266
Current liabilities
10,191
54,755
Total liabilities
30,681
98,284
Other Data
Average net accounts receivable
$7,789
$4,140
Average inventory
7,110
33,407
Net cash provided by operating activities
5,929
25,981
Capital expenditures
1,785
12,376
Dividends
482
3,988
(a)
For each company, compute the following ratios.
(Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)
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Target
Wal-Mart
(1)
Current ratio.
:1
:1
(2)
Accounts receivable turnover.
times
times
(3)
Average collection period.
days
days
(4)
Inventory turnover.
times
times
(5)
Days in inventory.
days
days
(6)
Profit margin.
%
%
(7)
Asset turnover.
times
times
(8)
Return on assets.
%
%
(9)
Return on common stockholders’ equity.
%
%
(10)
Debt to assets ratio.
%
%
(11)
Times interest earned.
times
times
(12)
Current cash debt coverage.
times
times
(13)
Cash debt coverage.
times
times
(14)
Free cash flow.
$
$
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